Govt. Did Not Hide Facts, Says P.M.

Press, Volume CVI, Issue 31344, 14 April 1967, Page 14

Govt. Did Not Hide Facts, Says P.M.

Far from hiding the facts, the Government had consistently warned about the state of the economy, said the Prime Minister (Mr Holyoake) in Christchurch last night.

“Labour claims that we knew in November that there would be a drop in wool prices,” he told a packed hall at Burnside High School. “They knew the full facts then, and they know them today.”

He showed a graph indicating the steep rise in the amount of wool purchased by the Wool Commission, from December, and said that neither the commission nor the Government knew that prices would fall. “You can see the economic tragedy that has befallen New Zealand,” he told his audience of over 800. The Labour Party also knew the facts before the election. If it knew that wool prices would fall why were the people not told at the elections? “If they knew that our exports would earn £5O million less than previous estimates, why did they make such irresponsible promises that

would have cost the country £lOO million?” the Prime Minister asked. He charged Labour with being “utterly reckless and irresponsible” at the last General Elections and at the two by-elections. Luckily for the country, promises were recognised as election bribes. If the Labour Party had been elected, New Zealand would have been in “utter chaos.” Early Heckling

At the outset of the meeting, heckling came thick and fast during a short address by Mr E. S. F. Holland, National candidate. There were many young people present Mr Holyoake dealt with interjections and gradually heckling subsided. Questions at the end were mildly put and included those about

wool auctions, N.A.C. replacement aircraft, Rhodesia and conscription. “What about this year’s Budget?” asked one questioner. “It would be quite unconstitutional for me to tell you about it,” replied Mr Holyoake, “but I can say that it won’t be a ‘black Budget’.” Suddenly and without warning there had been a drastic drop in wool prices, the Prime Minister said. The Opposition had claimed that this could not be blamed for the country’s present economic difficulties. “Nor do I say it is the whole story—we had already taken some measures which were having their effects,” he added. Because of lower wool prices, New Zealand would suffer a drop of £4O million in overseas income, and because of a drop in meat prices, the country would earn £lO million less than estimated. “We had every reason in November to believe that prices would remain stable, and that with the dampening down measures taking effect, we could expect a better balance of payments in 1967,” the Prime Minister said. Wool Security

The Government was already borrowing money with the wool bought by the commission as security. It would be criminal not to do so if full employment was to be maintained in New Zealand.

There was no time for sectionalism at present, Mr Holyoake said. “It is not time to raise the shibboleths of class warfare. We are all workers and every man and woman makes his contribution.” He said he had never seen New Zealanders who had not faced a challenge and met it not emerging stronger. Asked about conscription, he said: “There is no call for conscription. There is no thought of it, and we haven't considered it.”